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2010 (4) TMI 902 - HC - VAT and Sales TaxEntitlement for input tax rebate - petitioner contended that he has purchased the jungle wood and plywoods from the registered dealer who are having TIN numbers & it is not his concern whether the said dealer has remitted the amount to the Government or not - Held that:- Under Section 10-4 of the Act, no deduction for input tax shall be made unless a tax invoice, debit note or credit note, in relation to a sale has been issued in accordance with Sections 29 or 30 and is with the registered dealer taking deduction at the time any returns in respect of sale is furnished. As the said six dealers have not filed any declarations nor remitted the tax collected from the petitioner-firm. Further it is clear from the records that the petitioner-firm has not produced any materials to show that the dealers with whom the petitioner has made transaction have remitted the tax collected from him though the petitioner has been making transaction with the said firms for the last more than three years. In order to gain the input tax rebate, the petitioner has produced the bogus tax invoices. Hence, the petitioner is not entitled to claim input tax rebate. Further, the petitioner-firm has not furnished reliable and proper information about the existence of the above said six dealers. The whereabouts of the said dealers was also not made known to the Department. Under Section 70 of the Act, the duty is cast upon the petitioner to prove that the said dealers have remitted the said amount to the State Government. Hence it is clear that the petitioner-firm has purchased the jungle wood from the bogus dealers who had TIN number without authority of law. The purchase was effected by the petitioner after the date of de-registration under the KVAT Act, hence the petitioner is not entitled to claim input tax rebate. Hence, the petitioner is liable to pay the penalty as provided under Section 72(2) of the Act and interest under Section 36 of the Act - against the assessee.
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